Penn National considers relocating Raceway Park and Beulah Park
The state of Ohio has been in the limelight recently. There is a lot going on in connection with the horse racing industry in that region. The hot news these days is the opening up of a racetrack in the vicinity of Youngston, Ohio by the name of Mahoning
Valley Downs & Resort. In case it is developed, this racino (racetrack and casino) is allegedly going to be a huge setup. It will feature a race track, hotel, shopping area, restaurant as well as video lottery terminals if they are made legal by that time.
The news of this development has made many track and casino owners wary, as they see their revenue shrinking and crowds being attracted by the new complex. Many are considering shifting their businesses before things get out of hand.
One such step is being considered by Penn National Gaming Inc (PNGI). They made it public on 21 January that Penn National is considering the possibility to shift either one or both of the race tracks the company owns. They see the development of the racino
in Wyoming as a real threat to their business operations.
Penn National is a racing and gaming business that has been operational since 1972, when it opened its first racetrack by the name of Penn National Race Course. Since then, it has added many casinos and racing facilities to its business. Currently, Penn
National is planning to relocate Beulah Park, which is near Columbus as well as Raceway Park in Toledo where harness racing is done. Beulah Park is Penn National’s recent acquisition, which it purchased last year.
Eric Schippers, who is the senior vice president of public affairs for PNGI, made the following comment regarding the relocation possibility, “It’s something we’re continuing to explore. Having potential Video Lottery Terminals (VLT) at the tracks in Columbus
and Toledo compete against the standalone casinos up the street ultimately may not be in the best interests of either racing or the state given the cannibalisation effect.”
Already the market conditions in Ohio State are almost saturated. In 2009, four casinos were approved by the voters, all of which have at least one racetrack supporting its operations. These are located in Cincinnati, Cleveland, Columbus and Toledo.
Beulah Park is already fighting competition, which is just a 15 minute ride away. Scioto Downs, which is owned by the MTR Gaming Group, is a harness racing track located in West Virginia. The vicinity of the two locations generated the idea of combining
Beulah Park and Scioto Downs but that move didn’t materialise.
However, there is another side to the story as well. In October 2009, Penn National made a verbal commitment with the city councilmen as well as the public, stating that it would not shift operations of Raceway Park even if it opens up a proposed casino
along the Maumee River. However, as the construction of the casino is now underway, Penn National has made public the possibility of relocating Raceway Park.
Councilman Lindsay Webb feels that Penn National has not honoured its earlier promise. However, before Penn National can legally undertake to move the racetracks, the action would have to be first approved by the State Racing Commission.
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